Third draft of budget comes before commissioners

Friday

Sep 20, 2013 at 8:40 AMSep 20, 2013 at 8:40 AM

COLDWATER — Branch County Administrator Bud Norman has made $1.2 million more in cuts to the proposed 2014 county budget — including the request to hire back six of 11 laid-off Branch County Sheriff's Office deputies.Reporting to the commission work session earlier this week, Norman said of the other top 14 department and elected official requests he eliminated six. Besides the deputies they included hiring back a full-time Michigan State University Extension service employee, another person for animal control and upgrades to government technology services for efficiency.This cuts $1.2 million from Norman's second budget revision.He cut out $4 million in capital outlay and contingencies in his second revised budget, trimming the requested $17.3 million to where he needs to cut $1 million more to match the expected $11.1 million revenues.Norman said this puts the county at "a risk point" if there were to be a need for emergency expenditures. The administrator said he hopes to cut "between $500,000 to $750,000 more by making more compromises or assuming more risks. That may be possible, but may not be possible. There are no more big ticket items to grab."The only other way to balance the budget otherwise would be to go into reserves — the fund balance."If you remember, last year we took a considerable amount out of (the fund balance). I will come back to you with a recommendation of what we can afford to do this year," Norman said.Norman explained two issues have not been addressed — wage increases in the Friend of the Court offices and reclassification to a higher salary for the veterans affairs director.Some of the 14 increases will be hard to cut, such as increased insurance, general election costs for next year, costs of fuel and state-mandated charges for foster and child placement.Another issue is the county contributions to its employee pension plan. The county did not make any for 2012 and used some of those funds to pay 2012 retirees' pensions out of general funds until it can consider converting from its current John Hancock plan to the state MERS system.Norman said it will be in October or early November before the county's consultant can give the commission figures on its liabilities amount — the same time MERS will report on takeover costs.The county for 2014 must add in costs of unemployment compensation it must pay the state for laid-off deputies, corrections officers, the MSUE employee and former Chief Assistant Prosecutor Mark Webb, who was not hired by another prosecutor's office.Commissioner Rod Olney questioned why the licensed attorney could not go into practice for himself.Revenues for the county have been decreasing with cuts in state funding and grants. Property taxes took a dive when properties were devalued after the recession of 2008."These are starting to recover," Norman said.Ad valorem tax revenues under the Headlee Amendment can increase only by the cost of living each year — no matter how much the property value increases.One state projection estimates it will take until 2019-20 before those tax revenues again reach the 2008 levels.When Norman brings back his fourth budget draft, Commissioner Dale Swift asked that actual dollar amounts be placed by each of the issues he has considered for increases and cuts.